Table 2. Values for independent variables q and pbase in rancher network scenarios.
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Low Size Effect |
High Size Effect |
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Low Communication |
Network links are weak, so that risks of being monitored as well as
information about costs is poorly communicated. Network links confer little
advantage in the way of reducing costs. |
Network links are weak, so that risks of being monitored as well as
information about costs is poorly communicated. Where they do exist, network
links significantly help reduce costs, such that some small properties
experience costs and limitations similar to larger properties. |
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High Communication |
Network links among ranchers are strong so that the risk of being monitored
is well communicated and understood. Network links confer little advantage in
the way of reducing costs. |
Network links among ranchers are strong. Network links also help farmers
significantly reduce their costs, i.e., through shared labor and equipment,
making their effective farm sizes much larger. In this scenario, small ranches
experience costs and limitations similar to larger properties, so that there is
no real economy of scale. |
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